Errors and omissions insurance protect business owners against lawsuits due to losses incurred by an employee’s mistake, omission, or act. Every business can benefit from this insurance coverage, from healthcare to real estate agents, IT, lawyers, accountants, IT, and architects.
What Do Errors And Omissions Insurance Cover?
E&O policy is what you need if you’re charged for professional negligence or accused of making a mistake. This policy will cover losses caused by unexpected events that leave you incapable of fulfilling a contract or can cause you to miss the deadline.
An E&O can also cover the cost of hiring an attorney to defend you in court. This is the policy you need if you want to cover the cost of settlement in slander, libel, and copyright infringement lawsuits. Remember that this policy doesn’t cover intentional acts or malicious. So read your contract and understand it before you sign to ensure no mishaps.
Why Do Businesses Need E&O Insurance?
While the law does not mandate errors and omissions insurance, it doesn’t mean it’s a good idea to go without it. You might need this policy in your profession. So many industries need this coverage, including social workers, psychologists, home health aides, therapists, and more. In fact, some clients might require this coverage to work with you. If you’re providing services to clients, ensure you get E&O insurance in the event of a lawsuit that you don’t expect.